[7] The project runs under the principles of financial sustainability and equitable sharing of benefits with the community for social development purposes.
[14] Communities contribute time and labour, known as "sweat equity", which creates a sense of ownership and helps sustain the projects.
[20][21] The European Union under the PEACE project has funded the Sarhad Rural Support Programme (SRSP) to set up 240 micro hydropower plants,[22][23][24] in the Malakand Division.
[25] A significant portion of the funds are allocated to the building or restoration of basic infrastructure such as road, bridges, water channels etc.
[26][27][28][29] Electricity from hydro schemes cuts down the use of wood for cooking, heating and lighting, consequently reducing deforestation which is a huge problem in the region.